T e le c o m   R e g u la to ry   A u th o rity   o f  In d ia  
Figures are for illustration 
A Service Provider 
only 
  
 Service  Area 
 Population 
in  Millions 
20 
 Subscriber base 
In Millions 
5.00 
 Current market penetration 
in %age 
25% 
 Projected market share 
in %age 
20% 
 Busy hour traffic per sub 
mE 
40 
 Total busy hour traffic 
Erlangs 
40000 
  
B Calculation of number of sectors 
 Frequency  allocated 
MHz 
10 
 Reuse 
9 
 No of sectors 
3 
 Number of channels per sector 
nos. 
44.4 
 Erlangs per sector 
in Erlangs 
32.5 
 Number of sectors required 
nos. 
1229 
 New frequency allocated (cumulative) 
in MHz 
12.4 
 Number of channels per sector 
nos. 
55 
 Erlangs per sector 
in Erlangs 
42.4 
 Number of sectors required 
nos. 
943 
 Number of sectors reduced 
nos. 
286 
  
  
C Costing Parameters 
I Equipment capital cost per sector (excl TRX) 
in Rs.lakhs 
4.00 
 Discount rate 
in Rs.lakhs 
10% 
 Per annum cost 
in Rs.lakhs 
0.40 
II TRX  cost 
in  Rs.lakhs 
2 
 Discount rate 
in Rs.lakhs 
15% 
 Per annum cost 
in Rs.lakhs 
0.3 
III Equipment maintenance cost @ 15% of (I) & (II) in Rs.lakhs 
0.90 
IV Site rental per sector 
in Rs.lakhs 
0.33 
  
D Calculation of Spectrum charge 
 Cost of new sectors 
in Rs lakhs 
581 
Cost of additional radios at existing sites if extra 
 spectrum used 
in Rs lakhs 
86 
 Net cost of additional infrastructure 
in Rs lakhs 
495 
 Net cost of additional infrastructure per MHz 
in Rs lakhs 
206 
 Spectrum charge for 10 MHz 
in Rs lakhs 
2064 
 Spectrum charge for 10 MHz 
in Rs Crores 
21 
 Spectrum charge per MHz 
in Rs Crores 
2.1 
  
E Discount for rural coverage 
 No of BTS in rural area 
nos. 
20 
 Total number of Base Station 
nos. 
500 
 Total amount of Discount 
in %age 
4% 
  Net spectrum charge per MHz 
in Rs Crores 
2.0 
48 
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